I find parents and esp grandparents sooooooo hard to buy for, mainly bacause they have pretty much everything they need!
So I try to buy my dad stuff he would not ordinarily choose.
For his 60th we bought him am ipod and dock and he is now completely converted. But in the past I have bought him the norm - clothes, magazine subscription, a watch, an Alpine cd head unit (joint with my brother) and his Birthday has just passed when we got him a voucher to go to the local 'michelin starred' eaterie - which again is somthing he would never do with his own money (hopefully he likes it!!!!!)
Hope that helps